TAG to enter the Polish residential-for-rent market; acquisition of Vantage Development via tender offer secured by 100% commitment of selling shareholders

- Vantage Development shareholders have entered into an investment agreement with TAG to sell all their shares for a total net consideration of c.EUR 85m

- Mid-term target of c. 8,000 to 10,000 residential rental units in Poland; Vantage Development's pipeline includes c. 5,300 residential units, thereof up to c. 3,400 units available for the letting business

- Growing Polish residential-for-rent market as a regional expansion of TAG's business model; Vantage Development as a nucleus of TAG's rental portfolio in Poland

Hamburg (8 November 2019) - Today, TAG Immobilien AG ("TAG") signed via TAG Beteiligungs- und Immobilienverwaltungs GmbH, a 100% owned subsidiary, an investment agreement to acquire 100% of the shares in Vantage Development S.A. ("Vantage Development") with a simultaneous carve-out of its commercial real estate business which will be repurchased by the selling shareholders. Based on a tender offer price of PLN 11.50 per share, the total transaction consideration (calculated on the basis of a PLN/EUR exchange rate of 0.234) amounts to c. EUR 131m, of which c. EUR 46m relate to the commercial real estate business unit. As a result, the total net consideration for TAG amounts to c. EUR 85m for the residential business and platform of Vantage Development. The total transaction consideration will be fully paid by TAG's existing cash. The selling shareholders have committed to tender 100% of the shares outstanding. Closing of the transaction is expected in Q1 2020 and remains subject to mandatory anti-trust clearance. After completion of the transaction, delisting of Vantage Development's shares, currently listed on the Warsaw Stock Exchange, is intended.

Vantage Development is a leading real estate developer focused on the economically strong region of Wroclaw in the western part of Poland with proven track record of more than 4,000 units completed and delivered. The secured residential pipeline currently consists of several residential projects in Wroclaw representing a total of c. 5,300 units. Thereof, according to TAG's assumptions, up to c. 3,400 units could be held upon completion as yielding assets on the balance sheet to form the nucleus of TAG's rental portfolio in Poland, whilst the remainder of the development pipeline is already in the process of being sold down against cash between 2019 and 2021.

Contact
TAG Immobilien AG
Dominique Mann
Head of Investor & Public Relations
Phone +49 (0) 40 380 32 305
Fax +49 (0) 40 380 32 390
ir@tag-ag.com